UKRAINE-RUSSIAN WAR: Nigeria’s Bonny Light price rises to $126.4 per barrel

By Eyo Nsima

The price of Nigeria’s Bonny Light has risen to $126.4 per barrel, from $124 per barrel, due to supply disruptions, occasioned by the ongoing Ukraine-Russian war.

This showed an excess of $64.4 per barrel against the $62 per barrel reference price of the 2022 budget, which was also based on 1.8 million barrels per day, including condensate.

However, there were indications that prices would continue to rise in the coming weeks as supply instability and speculation continue to impact the global market.

Meanwhile, in a statement obtained by The Daily, www.thedaily-ng.com, the Organisation of Petroleum Exporting Countries, OPEC, stated that, “The 29th OPEC and non-OPEC Ministerial Meeting was held via videoconference on June 2, 2022. The Meeting noted the most recent reopening from lockdowns in major global economic centers. It further noted that global refinery intake is expected to increase after seasonal maintenance. The Meeting highlighted the importance of stable and balanced markets for both crude oil and refined products.

“The Meeting, therefore, resolved to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.

“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for the month of July 2022.

“Advance the planned overall production adjustment for the month of September and redistribute equally the 0.432 mb/d production increase over the months of July and August 2022. Therefore, July production will be adjusted upward by 0.648 mb/d as per the attached schedule.

“Extend the compensation period until the end of December 2022 as requested by some underperforming countries and request that underperforming countries submit their plans by 17 June 2022. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

“Reiterate the critical importance of adhering to full conformity and to the compensation mechanism.

“Hold the 30th OPEC and non-OPEC Ministerial Meeting on 30 June 2022.”